Alcoa AA Earnings Disappoint – Futures Lower

April 13th, 2010

Our notion of buy the rumor, sell the news is holding true this morning as Alcoa AA earnings were a big disappointment. What has now become an unexciting start to the U.S. first-quarter corporate earnings season, Alcoa saw its first quarter loss narrow to $201 million from $497 million in the same period a year ago. But the earnings statement failed to excite — personally I believe that the large scale cost-cutting efforts buy major companies have been exhausted. Now profits have to come from actual growth!

Here is the chart of AA. MACD bearish cross is the first thing to notice here traders.

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